Moody’s hailed Brazil for having a positive outlook and high economic strength because its large and growing domestic market and high degree of diversification.
In the ratings agency’s Credit Analysis Brazil report, Moody’s said the country’s fiscal profile is characterized by government revenues and expenditures that have been consistently high in absolute and relative terms.
Despite being somewhat overshadowed by the magnitude of China, India and Russia's economies, Brazil has actually grown to such a size that its economic size overtook the UK in the global rankings.
The government predicts it will surpass last years GDP growth rate of 2.7 percent.
However, other analyst views have been mixed.
While Brazil has managed to become more powerful in economic sway over the last decade or so, 2011 highlighted some key hurdles that the country needs to overcome.
Credit Suisse, now infamously, predicted Brazil’s economy to expand by only a .5 percent this year, citing weak industrial production and slowing investment.
While Brazil's finance minister dubbed Credit Suisse's assessment "a joke," market consensus has forecasted a 2.3 percent GDP growth rate for this year and has highlighted the government's need for a growth plan.
Written and Presented by Lianna Brinded.